Mena solar awards trajectory improves
14 August 2023
Commentary
Jennifer Aguinaldo
Energy & technology editor
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As expected, state utility Dubai Electricity & Water Authority (Dewa) has picked Abu Dhabi-based Masdar as the preferred bidder to develop and operate the 1,800MW sixth phase of the Mohammed bin Rashid (MBR) al-Maktoum Solar Park in Dubai.
It is the latest positive development in terms of renewable energy contract awards in the Middle East and North Africa (Mena) region, which saw significant declines in 2019 and 2020.
The imminent contract award and the start of bid clarifications for Abu Dhabi’s third utility-scale solar photovoltaic (PV) project in Al-Ajban bode well for the sector. At the same time, two other projects, Shuiabah 1 and 2 in Saudi Arabia, reached financial close last week.
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The market is also waiting for Saudi Power Procurement Company to announce the shortlisted bidders for the two solar PV schemes under the fourth round of the kingdom’s National Renewable Energy Programme.
The potential signing of power-purchase agreements for these projects by the end of the year – assuming all goes well with technical and commercial negotiations – will take the total value of contracts awarded in the Mena region this year to roughly $8bn, 15 per cent more than the value awarded the previous year.
The expected signing of several more contracts in Saudi Arabia, particularly under the Public Investment Fund’s Price Discovery Scheme, will also propel the region towards awarding a record $11bn of renewable energy contracts this year – as MEED has forecast based on an analysis of regional projects tracker MEED Projects’ renewable energy pipeline.
This value will exceed by 8 per cent the $10bn-worth of contracts let in 2017, when state utilities in Dubai and Abu Dhabi awarded the $3.8bn contract for the hybrid solar PV and concentrated solar power fourth phase of MBR Solar Park and the UAE capital’s first utility-scale solar PV plant in Sweihan.
While several developers and contractors have cited the possibility of an overheating engineering, procurement and construction (EPC) market due to the huge pipeline of projects, delayed in part by the Covid-19 pandemic, it appears that project stakeholders are still in a comfortable position to award new contracts, especially with the easing of supply chain constraints and solar module and EPC costs.
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Abu Dhabi National Oil Company’s onshore operating arm (Adnoc Onshore) has selected contractors for a major project to tie in wells across the Bab and North East Bab oil field developments in Abu Dhabi.
Located 84 kilometres southwest of Abu Dhabi city, the Bab field has been in production since 1960 and is the emirate’s first oil-producing asset. The North East Bab cluster comprises the Al-Nouf, Rumaitha and Shanayel fields.
The Bab and North East Bab One Tie-In project is central to Adnoc Onshore’s contribution to Adnoc Group’s target of expanding crude oil production capacity to 5 million barrels a day (b/d) by 2027, an initiative known as the Accelerated Integrated Programme 5. The state energy company’s total production capacity currently stands at approximately 4.85 million b/d.
According to industry sources, Adnoc Onshore has selected local contractor Robt Stone Middle East and China’s Jereh Group to carry out engineering, procurement and construction (EPC) works on the project. While both firms have been notified of their selection, a formal project kick-off meeting has yet to take place.
Adnoc Onshore is understood to have started the tendering process for the Bab and North East Bab One Tie-In project last year, with contractors submitting technical and commercial bids earlier this year.
Following the evaluation of bids, Adnoc Onshore sought best commercial offers from the bidders, which contractors submitted in May, MEED previously reported.
The project budget is estimated at $1.2bn.
Bidders for the contract are understood to have included:
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The project scope covers residual engineering, procurement of materials not supplied as free-issue items, site surveys, construction, installation, inspection, testing, and pre-commissioning and commissioning support. The works will deliver new wellsite facilities, including a new mini-pad, well bays and clusters across the Bab and North East Bab developments.
Adnoc Onshore is Adnoc Group’s largest production subsidiary, accounting for roughly 2 million b/d of crude and about 7 billion cubic feet a day of associated gas from four primary onshore asset clusters: Bab, Bu Hasa, North East Bab and South East.
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Qatar’s Public Works Authority (Ashghal) has invited contractors to bid on a contract to build roads and related infrastructure around Al-Udeid Air Base.
The project is located in Zone 95 of Al-Wakra Municipality, adjacent to Al-Majd Road.
The tender was issued on 22 October, with a submission deadline of 22 November.
The scope includes the construction of a dual-lane carriageway to improve access to the air base, together with three roundabouts. The alignment will connect to Al-Majd Road to the east and tie into Street 203 in Zone 95 to the west. The contractor will also resurface and maintain connections to the existing road network.
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Saudi Arabia’s Royal Commission for Al-Ula (RCU) is conducting market sounding for the first phase of the Mughayra wastewater treatment plant (WWTP) expansion before formally starting its tendering process, according to industry sources.
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RCU is gauging interest from potential contractors and has not yet issued a prequalification questionnaire, a source said.
The scheme forms part of Saudi Arabia’s broader investment drive to develop its cultural and tourism offering across Al-Ula.
The commission launched its Journey Through Time Masterplan in April 2021, with implementation scheduled in three phases through 2035. The masterplan covers infrastructure development, water management and irrigation, alongside the regeneration of a 9-kilometre cultural oasis.
French engineering firm Artelia previously noted in its 2025 annual corporate report that it is involved in the design phase of the Mughayra WWTP.
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Abu Dhabi National Oil Company (Adnoc Group) has identified more than AED60bn ($16.3bn) in local manufacturing opportunities through 2030.
The Abu Dhabi energy company also announced changes to its procurement, supplier registration and In-Country Value (ICV) localisation frameworks.
The measures were announced at the second Make it with Adnoc Forum, held in Abu Dhabi on October 25. They are intended to give manufacturers, suppliers and investors greater visibility of future demand and a faster, clearer route to compete for Adnoc contracts, the company said.
The more than 200 manufacturing opportunities cover products required for Adnoc’s projects and operations, including:
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Many of the identified products are currently imported, Adnoc said. “Manufacturing them in the UAE shortens lead times, reduces exposure to global supply disruptions and strengthens the resilience of Adnoc’s operations,” it said in its statement.
Adnoc, the UAE Ministry of Industry & Advanced Technology and the Abu Dhabi Investment Office (Adio) will work together to connect manufacturers with these opportunities. The collaboration will combine visibility of Adnoc’s demand, access to the national industrial database and financing through the National Industrial Resilience Fund, the company said.
Adnoc also signed two memorandums of understanding on the sidelines of the forum with Adio and Kezad Group.
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Separately, Adnoc announced a redesign of its supplier registration and prequalification process. The company is targeting a reduction of up to 80% in the time required for suppliers to complete the process and become eligible to compete for Adnoc opportunities.
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